People allocate time for college because Select one: a. it decreases human capital by lowering work experience. b. it leads to lower lifetime earnings because opportunity costs are high. c. it leads to higher lifetime earnings because it is an investment in human capital. d. it increases the wages paid to low-skilled workers.

What is the Relationship between Education and Human Capital?

The government wants to encourage individuals on welfare to become employed. It is considering two possible incentive programs: a. Give firms $2 per hour for every individual on welfare who is hired. b. Give each firm that hires one or more welfare workers a payment of $1,000 per year, irrespective of the number it hires. To what extent is each of these programs likely to be effective at increasing the employment opportunities of welfare workers? Giving firms $2 per hour for every individual on welfare who is hired O A. is likely to be unsuccessful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $2, decreasing employment. O B. is likely to be unsuccessful because the substitution effect from a wage decrease is negative in terms of hours of work. OC. may be successful or may be unsuccessful depending on whether the income effect or the substitution effect from a wage…

States, cities and towns use all of the following incentives to attract and keep employers except: 15. a. Offering tax breaks b. Negotiating reduced rates for electricity c. Sponsoring science parks d. Developing import-export banks e. Supporting technology extension centers 16. Statement I: Compared to other industrial countries, the United States does a mediocre job of educating primary and secondary students in math and science Statement ll: To help remedy mediocre performance by students in math and science, and other subject matter areas of study the federal government insists on a minimum level of funding per capita for primary and secondary public school students a. Statement I and statement lI are both true b. Statement I and statement II are both false Statement I is true and statement Il is false c. d. Statement I is false and statement lI is true 17. Lowering regulatory barriers to overseas investment and imported products is part of: a. “fair trade” b.…

Female workers tend to earn a lower wage compared to their male counterparts when performing the same job. What is this an example of? a.Signaling b.All of the answers are correct c.Discrimination d.Screening